O.C. entrepreneur revives retro brands

Nov. 19, 2012

Updated Aug. 21, 2013 1:17 p.m.

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From his Newport Beach home, Ellia Kassoff's companies resurrect retro brand names, such as Astro Pop candy, and bring them back to market or license them to firms that make the products. "Astro Pops were literally invented by a rocket scientist. It is the No. 1 nostalgic candy in the U.S. dating from 1962," he said. Jordan Marsh, seen on Kassoff's T-shirt, is the trademark of a former department store chain. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Ellia Kassof's Leaf company has produced a new line of Astro Pop sodas using traditional Astro Pop candy flavors. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Leaf Brands CEO Ellia Kassoff, right, is shown with his team and an array of their candy products in his Newport Beach home office. From left are Vice Helen Horwich, vice president; Roger Serad, international distribution; and Caleb Akey, marketing assistant. Next quarter they plan to expand into commercial space in Irvine. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Leaf Brands CEO Ellia Kassoff has introduced the Farts line of candy with entries such as Fruti Farts and Sour Farts, billed as "So fun, they'll make you laugh." JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Leaf Brands CEO Ellia Kassoff revived Astro Pop candy. "It's the longest-lasting sucker in the world. People used to eat it through a whole movie. Astro Pops were literally invented by a rocket scientist. It is the No. 1 nostalgic candy in the U.S. dating from 1962," he said. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Leaf Brands CEO Ellia Kassoff, right, is shown with his team and an array of their candy products at his Newport Beach home. From left are Vice Helen Horwich, vice president; Roger Serad, international distribution; and Caleb Akey, marketing assistant. Next quarter they plan to expand into commercial space in Irvine. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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David's Signature Jelly Beans is another product line revived by Ellia Kassoff. JEBB HARRIS, THE ORANGE COUNTY REGISTER

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Leaf Brands CEO Ellia Kassoff revived Astro Pop candy. "It's the longest-lasting sucker in the world. People used to eat it through a whole movie." JEBB HARRIS, THE ORANGE COUNTY REGISTER

From his Newport Beach home, Ellia Kassoff's companies resurrect retro brand names, such as Astro Pop candy, and bring them back to market or license them to firms that make the products. "Astro Pops were literally invented by a rocket scientist. It is the No. 1 nostalgic candy in the U.S. dating from 1962," he said. Jordan Marsh, seen on Kassoff's T-shirt, is the trademark of a former department store chain. JEBB HARRIS, THE ORANGE COUNTY REGISTER

Strategic Marks LLC

Type of business: Revives established brand names that have died or lapsed

Newport Coast businessman Ellia Kassoff just wanted to buy some Astro Pops, his favorite childhood suckers. But Spangler Candy stopped making the treat in 2004.

Kassoff, who owns an executive recruiting practice in the high-tech industry, decided to revive Astro Pops as a hobby. He bought the brand name and recipe, found a contract candy manufacturer and distributor and has sold more than a million Astro Pops so far this year.

"It really is a personal thing with me," Kassoff said. "How can they just discontinue one of the most iconic candy brands?"

But the personal has become professional. Kassoff sensed a business opportunity when his research found that many iconic products disappear despite consumer popularity. He has hired others to manage his recruiting company so that he can devote more time to building Strategic Marks LLC, a company that revives "dead" or "ghost" brands, even though he has found that his endeavor is not risk-free.

Kassoff has established a subsidiary, Leaf Brands LLC, to resurrect an uncle's company that used to distribute candy such as Jolly Ranchers, Milk Duds and Whoppers before being acquired by Hershey in 1996. The revived Leaf Brands sells Astro Pops, Farts, Screaming Yellow Zonkers and other sweets.

Kassoff is not the only brand revivalist. Tim Miller in Maryland bought the National Premium Beer trademark at auction in 2010. John Dowling in New York is resurrecting the Boast polo shirt brand. And Eddie Riegel in Pennsylvania has reopened the Seafood Shanty restaurant chain. Perhaps the biggest reviver is the Chicago-based River West Brands LLC, which since 2008 has re-introduced Coleco games, Eagle Snacks and Brim Coffee, among others.

Brand expert Chiranjeev Kohli at Cal State Fullerton said the concept makes sense in some cases. Many times a brand declines because of intense competition (Ford Taurus vs. Honda Accord and Toyota Camry), a negative event (such as the Pan Am plane bombing over Lockerbie, Scotland) or loss of image (Oldsmobile).

"But there are plenty of brand names that have strong recognition and positive image," Kohli said. "It can cost millions of dollars and take years to build a brand. Reviving one is cheaper than starting from scratch."

Kohli cited Ford's decision to discontinue the Taurus in 2006, despite 90 percent name recognition and positive image. The company restored the car in 2007 because CEO Alan Mulanny said, "Ford may have wasted 20 years of investment in a brand name" by ending production.

While Strategic Marks has been successful with candy brands, Kassoff's venture has run into legal battles while trying to move into the department store arena. In 2010, Strategic Marks applied to the U.S. Patent & Trademark Office for seemingly abandoned department store names Jordan Marsh, Bullock's, Robinsons, Filene's and others. Macy's Inc. had bought many of the retail chains over the years and either closed the stores or changed them to the Macy's brand.

Macy's had not used the brands in more than three years, Kassoff said, but in the summer of 2011 started offering online sales of bags and T-shirts decorated with defunct store names. Then in December 2011, Macy's sued Strategic Marks in federal court claiming trademark infringement and unfair competition.

Macy's also contested the awarding of the trademarks to the Patent & Trademark Office, so their issuance is frozen pending the lawsuit's outcome, said Strategic Marks' attorney Benjamin Ashurov of KB-Ash Law Group in Pleasanton. The case is scheduled for trial in April.

Macy's attorneys did not return Register phone calls, and media relations Vice President Holly Thomas said the company does not comment on litigation.

In a preliminary action, District Judge Samuel Conti ruled that "The court also finds that Strategic Marks may have a meritorious defense to Macy's action."

A federal trademark is awarded for 10 years but is considered abandoned if the name isn't used for three years. Intellectual property attorney Pamela Chestek noted on her Property Intangible blog that Macy's doesn't have live trademark registrations for most of the department store names. "Macy's quite publicly ceased using these marks a number of years ago, often to the great unhappiness of local shoppers," she wrote.

Kassoff said he intends to pursue the case and does not want to settle. "I've lost track of how much I have spent on the case. It's not the money. I don't think it's right for Macy's to bully other companies. I want to give the public back a little of what they lost."

If he prevails, Kassoff said he would like to license the names to entrepreneurs who want to set up e-commerce websites or pop-up stores or to mall owners who want to use the names on vacant space in their properties.

River West Brands has avoided such fights by working with former brand owners, said CEO Mark Thomann. "We generally acquire the brand from the former owners ... and work with them so that we will be good stewards."

Thomann added that companies should not be allowed to hold trademarks they have no intention of using merely to keep competitors at bay. "If you file an intent to use (a trademark) and haven't had it in use for some time, in my opinion you are committing fraud on the Trademark Office. Is that behavior you want to condone?"

River West has a procedure for identifying dead brands that are worth resurrecting, Thomann said. The company seeks consumer product categories with large sales and brands that have the potential to become a "master brand," that is, one that can be extended to other products.

One River West brand is Salon Selectives, created in 1987 by Helene Curtis but dropped when Unilever bought the company in 1996. The brand can be applied not only to shampoos and conditioners but also to brushes and other accessories, Thomann explained.

"I won't be tricked (into acquiring a brand) by brand awareness alone," he said. "It's a start, but it has to be innovative. The hard work is putting money and time to bring these brands back. It's like buying a turn-of-the-20th-century house and bringing it up to date to use for the 21st century."

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